Hungary remains a major hurdle, as EU sanctions require unanimous support. Hungary is pushing for about 750 million euros ($800 million) to upgrade its refineries and expand the pipeline from Croatia.
Oil prices climbed nearly 3% to a two-month high on Thursday on signs of tight supplies ahead of the US summer driving season, as the European Union (EU) plans to ban crude imports from Russia over its invasion of Ukraine. But fought with Hungary.
Traders also noted that following an increase in equities in oil prices and some weakening of the US dollar against a basket of currencies, oil becomes cheaper when bought in other currencies.
Brent futures were up $3.37, or 3.0%, at $117.40 a barrel, while US West Texas Intermediate (WTI) crude was up $3.76, or 3.4%, at $114.09.
After gaining six consecutive days, Brent closed at its highest level since March 25. WTI closed at its highest level since May 16.
“Crude oil prices rose as the start of the summer driving season was about to turn downward for US stockpiles,” said Edward Moya, senior market analyst at data and analytics firm OANDA.
Prices were supported by a large weekly decline in US crude inventories reported on Wednesday. [EIA/S]
PVM Oil’s Tamas Varga said, “The fundamental background … is gaining price support … and will intensify further once the EU sanctions on the sale of Russian oil are supported by all parties involved. “
European Council President Charles Michel said he was confident an agreement could be reached before the next council meeting on 30 May.
Hungary remains a major hurdle, as EU sanctions require unanimous support. Hungary is pushing for about 750 million euros ($800 million) to upgrade its refineries and expand the pipeline from Croatia.
Even without formal sanctions, there is very little Russian oil available as buyers and business houses have avoided the country’s suppliers.
Russia’s oil production should drop from 524 million tonnes this year to 480-500 million tonnes in 2021, state-run news agency RIA reported, citing Deputy Prime Minister Alexander Novak.
OPEC+ meets on June 2 and is expected to stick to last year’s deal to raise July’s production target by 432,000 barrels per day, six OPEC+ sources told Reuters, following a sharp rise to control prices. For Western calls rejected.
Other factors are also supporting oil prices.
“Shanghai is preparing to reopen after two months of lockdown, while the US peak driving season begins with Memorial Day weekend,” said Sugandha Sachdeva, Vice President, Commodity Research at Religare Broking. The United States of America celebrates Memorial Day on Monday.
The US government confiscated an Iranian oil cargo held on a Russian-operated ship near Greece and will ship the cargo aboard another ship to the United States.
Meanwhile, Britain announced an unexpected 25% tax on oil and gas producers’ profits, along with a 15 billion pound ($18.9 billion) package of support for families struggling to pay energy bills.
Hungary announced new untaxed taxes worth $800 billion ($2.19 billion) on “extra profit” earned by banks, energy companies and other firms.
0 notes
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
for the latest auto news And reviewFollow carandbike.com Twitter, Facebookand subscribe to us youtube Channel.